Successful management of intellectual property assets such as trademarks, copyrights and patents involves much more than simply securing their protection to attain their full value. Considerable effort is required to implement an effective IP strategy – one which is even greater in respect of non-registrable IP rights such as copyrights, since their lack of registration against which to reconcile transactions often results in issues concerning even the basic legal considerations of ownership, jurisdiction of creation and use. The fluidity of the internet and relative ease of infringement complicates matters even further.

However, Blockchain technology, with its immutable characteristics and peer-to-peer review, may be the solution to these issues. A Blockchain database is capable of providing a tamper-proof ‘digital certificate of authenticity’, which may address a multitude of issues including ownership, evidence, publication and first and genuine use. Extant legislation would need amendment to address whether this digital certificate denotes actual legal ownership and whether or not Blockchain records are acceptable as evidence in court.

Blockchain databases could also enable simplification of enforcement procedures by right-holders against counterfeits, parallel imports and grey market activity; while consumers would be able to verify the authenticity of a product by validating its origin against Blockchain records. Moreover, transaction issues, particularly internet licensing, could be facilitated through self-executing ‘smart contracts’.

Indeed, Blockchain presents a welcome opportunity to make IP rights management more streamlined, less expensive and more transparent. Blockchain use cases for intellectual property clearly cannot be underestimated by businesses, authorities and governmental agencies.

This article forms part of a weekly series called ‘Unravelling Blockchain’, contributed by Camilleri Preziosi Advocates, which explores Blockchain’s unique features and expands upon the technology’s legal implications across various commercial and corporate sectors. For a more detailed commentary, please visit www.camilleripreziosi.com.